Blog: Pilgrim's signals more cuts in US meat
Dean Best | 12 March 2008
So, more rationalization in the US meat industry. This year, we have already had Tyson Foods announce plans to cut its beef operations and Smithfield Foods sell off its own beef business to focus on pork.
Brazil-based meat giant JBS, the buyer of the Smithfield business, has played a key role in the consolidation of the sector, with the acquisition of another US firm, National Beef Packing Co.
Today (12 March), we saw poultry giant Pilgrim’s Pride unveil plans to wield the axe and close a chicken processing complex and six of its 13 distribution centres in the US.
Like Tyson, Pilgrim’s Pride is looking to revive margins hit by the soaring costs of corn.
However, recently-appointed president and CEO Clint Rivers saved most of his ire for Washington, blaming the US government's "ill-advised policy" to subsidise ethanol production for the soaring cost of corn.
News of Pilgrim Pride’s cuts sent shares in other US poultry groups soaring. Wall Street sees rationalisation as vital in improving industry margins.
However, as Rivers warned, further cuts in the poultry industry are inevitable as processors are forced to readjust to food inflation and weakening demand.
All of which means more job cuts in one of the key food sectors in the US.
Today (23 December) is just-food's last day before closing for Christmas. We'll return, raring to go on Tuesday 3 January - but of course there's been plenty of top-notch content that has gone live in...
The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...
- 2017: three major drivers of M&A strategy
- just-food 2017 Survey - your thoughts on growth
- The food market in 2017 - consumer trends and M&A
- Food market in 2017: need-to-know US trends
- 2017 - what will shape the UK food sector?
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- Ferrero insists Nutella not pulled from shelves
- Lindt sees FY sales acceleration on Europe growth
- Unilever sets packaging target